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### POV - Dollar-yen started the week....>

DOLLAR-YEN
DOLLAR-YEN: ### POV - Dollar-yen started the week on a buoyant tone after
Governor Kuroda's powerful monetary easing remarks sent the pair to near 8-month
highs of Y114.73. A minor retrace to Y113.70 was quickly eroded to settle around
the Y114.00 area.
- As monetary policy divergence continues, the Fed is expected to carry out
further policy tightening, whilst the BOJ is set to continue with its ultra-easy
monetary policy. Another factor to look at is tax, PM Abe plans to raise Japan's
sales tax from 8% to 10% in October 2019, President Trump has proposed to
overhaul the US tax code with lower taxes.
- This could further pressure the yen and look to challenge the key Y115.00 area
which is reported to hold barrier protection.
- As an additional note November historically has been a good month for the
pair, dollar-yen has shown solid gains in 6 of the last 7 years.
- One caveat for the move higher could come from geopolitical tensions which
should boost the safe-haven yen.

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